TheThe ImpactImpact ofof GlobalizationGlobalization OnOn FloridaFlorida’’ss Environment:Environment: IsIs thethe EconomyEconomy OutpacingOutpacing thethe Environment?Environment?
Renu Khator August 30, 2006 UnderstandingUnderstanding Globalization?Globalization?
… “the intensification of worldwide social relations which link distant localities by events occurring many miles away and vice versa” (Giddens, 1990) …“a set of processes causing production and consumption activities to shift from local scale to national scale to a global scale” (O’Obrien & Leichenko, 2000). …Invites foreign objects, people and experiences into the local environment. ImpactImpact ofof GlobalizationGlobalization onon thethe EnvironmentEnvironment Progress paradigm
Societies, by nature, are constantly evolving and that any change necessarily leads to adjustment, adaptation and thus progress Incompatibility Paradigm
Corporations are like cancerous tumors, which forget they are part of a larger whole of the body and unleash the pursuit of their unlimited growth. With economic globalization, instead of trying to contain the cancer, we feed it – pulling down barriers in its path, allowing it to devour ever more of our natural world. Retallack GlobalizationGlobalization inin FloridaFlorida z International trade is the largest economic sector ($42 billion) more than tourism and agriculture! z 55% of US-Central America trade and 45% of the US-Caribbean trade moves through Florida seaports and airports z Florida exported goods worth $28 billion from 213 countries in 2000. z Direct Foreign Investment in Florida is growing 16% annually z Florida’s is the second most attractive destination for foreign travelers! z 300 people from other countries move to Florida each day! WhenWhen itit comescomes toto movementmovement ofof people,people, capitalcapital oror productsproducts……
Geography is History!! InternationalInternational traveltravel isis upup……
Overnight trips to the US 1990- US Residents Overnight 2000 International Trips 1990-2000
Source: US Department of Transportation, 2001 InternationalInternational phonephone callscalls havehave growngrown…… z The number of calls made Millions of Minutes of International Telephone from the United States to Calls Originating in the United States other countries increased from 200 million in 1980 30,000 25,000 to 6.6 billion in 2000. 20,000 Millions of 15,000 z On average, carriers billed Mi nutes $.51 per minute for 10,000 5,000 international calls in 2000, 0 a decline of more than 1980 1985 1990 1995 2000 Year 60% since 1980.
Source: FCC, 2002 ValueValue ofof USUS TradeTrade withwith NAFTANAFTA PartnersPartners
Value of U.S. trade with NAFTA Partners
700 600 500 400 300 200 100
Billions of current $US current of Billions 0 1988 1990 1992 1994 1996 1998 2000 2002 Year
Source: US Department of Transportation, 2001. InternationalInternational InvestmentInvestment
US Direct Investment Abroad: 1994-2000
1,400,000 1,200,000 1,000,000 800,000 600,000 400,000
Millions dollars of 200,000 0 1994 1995 1996 1997 1998 1999 2000 Year
Source: US Department of Transportation, 2001 InternationalInternational TravelTravel
International Visitors to Florida
6200 6000 z Florida ranked #2 5800
5600 in number of Number of Visitors (000) 5400 overseas visitors in 5200 2000 5000
4800 1995 1996 1997 1998 1999 2000 Year
Source: Department of Commerce, International Trade Administration ForeignForeign DirectDirect InvestmentInvestment
Foreign Direct Investment (FDI) in Florida 1996-2001 z Foreign Direct Investment (FDI) in Florida has
40000 grown 16% annually 35000 30000 between 1977-2000 25000 Millions of 20000 Dollars 15000 z There were 1574 foreign 10000 5000 0 establishments related to 1996 1997 1998 1999 2000 2001 Year foreign direct investment in Florida in 2000. Source: Florida Enterprise, Inc., 2004. Primary Data from: US Department of Commerce, Bureau of Economic Analysis FloridaFlorida ExportsExports
Florida’s export sales of merchandise in 2000 Florida exported goods worth $24.2 billion to 213 foreign markets in 2000
Source: US Department of Commerce, International Trade Administration, August 2001 FloridaFlorida asas anan InternationalInternational CrossroadCrossroad z Seaports are critical for globalization z Florida is located within 2000 miles of an estimated 22 different countries z Port of Miami, Port Everglades and Port Canaveral are the world’s 3 busiest ports
Source: FDOT TradeTrade AgreementsAgreements andand FloridaFlorida z Since the implementation of NAFTA exports to Canada and Mexico have increased 38% (Trade Promotion Authority). z Florida contributes more than 40% of US exports to the Western Hemisphere (myflorida.com, 2003) z Florida’s 2000 export sales of merchandise is 65% above the 1993 total (US DOC, 2001) z 55% of trade between Central America and the US, 27% of US-S. American trade and 45% of US-Caribbean trade moves through Florida (myflorida.com, 2003) HasHas therethere beenbeen aa shiftshift inin ProductionProduction asas aa resultresult ofof Globalization?Globalization? z “Florida has evolved from an agricultural state into a major international business and trade gateway between the Americas and the rest of the world (“To diversify.., 2003) z Large Growth in Non-Farm Employment suggests shift in production. z In a state once dominated by agriculture, especially citrus, the focus is now on high-tech and service industries. Change in Non-Farm Employment 1994-2004
Change in Leisure and Hospitality Employment 1994-2004
Source: US Dept. of Labor, BLS GlobalizationGlobalization andand EnvironmentEnvironment
An ad placed in Fortune Magazine by the Philippine government read: “To attract companies like yours…we have felled mountains, raized jungles, filled swamps, moved rivers, relocated towns…to make it easier for you and your business to do business here.”
(Retallack, 2002, p. 16) ImpactImpact onon thethe EnvironmentEnvironment fromfrom ChangesChanges inin ProductionProduction z Agricultural Industry z Sugar Industry z High Tech Industry z Service Industry AgricultureAgriculture andand FloridaFlorida z 9th nationally in value of farm products (2002) sales of $6.85 billion z 2nd nationally in production of fresh vegetables, $1.4 billion z Florida is the nation’s leader in citrus production with ~74% of US production in 2002-2003.
Source: Florida-Agriculture.com EnvironmentalEnvironmental ImpactsImpacts ofof AgricultureAgriculture z Agriculture is the highest consumer of water in FL (Council of 100). z Land and water development in the Everglades (EAA) has impacted wildlife and threatens the long term economic stability of local economies. z Runoff from agriculture is suggested to be cause of Decline in coral reefs in South Florida. AgriculturalAgricultural IndustryIndustry andand GlobalizationGlobalization z Florida is experiencing • Increase in imports of increased pressure to stay agricultural products leads ahead of global to a decrease of used farm competition land in Florida – NAFTA has made it easier Florida Farm Land in Thousands of to import tomatoes from Acres (1963-2003) Mexico. 20000 – Average annual US tomato 10000 imports from Mexico have Acres 0 Thousands of of Thousands increased 8-15% as a result 1960 1970 1980 1990 2000 2010 of NAFTA’s tariff changes Year (Porter, 2003). Source: Florida-Agriculture.com EnvironmentalEnvironmental ImpactsImpacts ofof aa ShiftShift AwayAway fromfrom AgricultureAgriculture z Decreased farm land use as a result of Globalization leads to – Less pesticides and fertilizer – Less water usage z The reduction in agricultural activities could also have negative effects – There may be increased land conversion to more harmful non-farm uses (Aillery et al., 2001). SugarSugar andand FloridaFlorida z Sugar Cane was valued at z Sugar threatens the $517 Million in 2002 Everglades (florida-agriculture.com) z High levels of z Sugar is available from phosphorous present foreign market at lower potential impact to Flora prices, but is tariffed and Fauna heavily and quotas prevent z Plans are not sustainable, importation of sufficient approximately 56 plant amounts (Schwabach, and animals species are 2000). threatened or endangered z High price of domestic in the everglades (GCSF, sugar ensures high level of 2001). production. EnvironmentalEnvironmental ImpactsImpacts ofof aa ShiftShift awayaway fromfrom SugarSugar z “Globalization of trade, seen by some environmental activists as an undiluted evil is perhaps the only means to save Florida’s Everglades” (Schwabach, 2000). z A reduction in price, tariffs, or increased export could have positive effects on the environment. – A 10% reduction in domestic sugar price could increase the water retention of the EAA by 10,000 acre-feet per year over. This would occur primarily as a result of increased cropland retirement because it would no longer be cost effective to produce sugar (Aillery et al, 2001) HighHigh--TechTech inin FloridaFlorida z Key Information z High tech -the most Technology (IT) industries important source of future – IT products and Information growth in Florida Services z Employment has increased – Software development 29.4% from 1995-2000. – Modeling, Simulation, Growth of Employment in Florida's High Training Tech Industry 1995-2000 – Photonics, Lasers and Optics
400000 – Microelectronics # 350000 300000 Employees 250000 – Telecommunications 200000 1995 2000 Year
Source: RERC, 2002 Source: ESRI Business Analyst 1999; Dun & Bradstreet Source: ESRI Business Analyst 1999; Dun & Bradstreet HighHigh TechTech andand thethe EnvironmentEnvironment z Carries significant environment baggage as seen by Silicon Valley – Air, water pollutants z However, the Florida High-tech industry is recognized as a “Clean Industry” – Subject to the CAA, CWA, CERCLA, Toxic Substance Control Act – The types of products being manufactured differ. z No signs of a reoccurrence of Silicon Valley in Florida ServiceService IndustryIndustry inin FloridaFlorida z More than 70% of z Expansion of the white Florida’s total economic collar service industry. output comes from service z There were 13 Fortune industry 500 firms in Florida in z Sectors of the Service 1997 Industry – 11 were service oriented – Banking & Finance – Insurance Distribution of Fortune 500 Firms in Florida Through Industries – Legal Services
12 – Accounting 10 Number of 8 – Management, Consulting & Fortune 500 6 Firms 4 Executive Search Firms 2 0 Service Manufacturing Industry
Source: Hartshorn, 1997 TheThe ServiceService IndustryIndustry andand thethe EnvironmentEnvironment z Conducive to an environmentally friendly economy z However, – The industry tends to increase human migration and put additional stress on resources – Additionally, low-income jobs keep infrastructure impoverished. SummarySummary ofof thethe Env.Env. EffectsEffects ofof ChangesChanges inin ProductionProduction z Shift away from agriculture and sugar – Less land used – Less water – Less pesticides and fertilizers z Shift towards service and high-tech – Environmentally friendly economy – Migration creates additional stress on resources and infrastructure MovementMovement ofof PeoplePeople z Globalization impacts the movement of people through – Tourism – Migration z There is an increased number of permanent international migrants, tourists and business activities (Solecki, 2001). TourismTourism andand FloridaFlorida z Perceived as most z 15% of visitors to Disney important industry in in 1990 were international Florida z Employment from 1995- z Florida was the #2 US 2000 has increased destination for 19.48% International Visitors in 2000 Growth of Employment in Florida's z Miami is the cruise Tourism Industry 1995-2000 capital of the world, 3.6 400000 million passengers in # 350000 Employees 300000 FY 2002. 250000 1995 2000 Year
Source: Real Estate Research Consultants, 2002 TourismTourism andand thethe EnvironmentEnvironment
z “Nowhere is the destructive effect of tourism more evident than in Florida” (Newman & Sage, 1999). – Increased consumption of energy: growth and tourism have boosted the states energy consumption over 250% over the past 35 years (Hull, 2004). – Increased visitation leads to increased development as well as to additional stress on natural resources z The UNEP has identified possible environmental effects of tourism as: – Overuse of water resources, pollution and degradation of fragile ecosystems (2001). PopulationPopulation GrowthGrowth z Domestic and International Migration z Florida’s population is expected to grow more than 53% from 2000- 2030 (FDOT, 2003).
Source: Enterprise Florida, 2004 (FL economy at a glance) InternationalInternational MigrationMigration z 38.6% of Florida’s foreign born population arrived in the State after 1990 (FAIR 2002 ) – 12.9% of pop was foreign born in 1990 – Figure increased to 16.7% in 2000 (US Census, 2003) z In 2000, ~73% of the foreign born population of Florida was from Latin America, 13% Europe and 9% Asia (US Census Bureau, 2003) ImpactImpact onon thethe EnvironmentEnvironment fromfrom HumanHuman MigrationMigration z Change in Landscape z Modes of Transportation z Availability of Water z Municipal and Solid Waste Production z Flora and Fauna ChangingChanging LandscapeLandscape
Source: United States Geologic Survey Transportation:Transportation: MotorMotor VehiclesVehicles inin FloridaFlorida z Over the last 2 decades the number of registered vehicles in Fl has increased by 166% (Governor’s Commission for Sustainable Florida, 1995). z Roadway length increases at a rate of .7%/year (FDOT, 2003) z Overall, emissions are down slightly (FDOT, 2003)
Source: FDOT, 2003. EnplanementsEnplanements forfor MajorMajor FloridaFlorida AirportsAirports (1966(1966--1999)1999) Year Orlando Miami Tampa/St. Pete. 1966 303083 2575337 929559 1970 486201 3607234 1422022 1975 1475859 4683269 2290901 1980 3124568 8136235 3600730 1985 4848771 7717685 4009979 1989 7373449 8591936 4409261 1999 12539000 12721000 6912208 Source: Bureau of Transportation Statistics UrbanUrban SprawlSprawl inin FloridaFlorida z Growth and urbanization result in reduced groundwater recharge lowered groundwater tables and increased pollution (GCSF, 2001) z Million of acres of Southern Forests will be lost to urban sprawl over the next 20 years – Florida leads the south in the amount of Timberland lost to development (Pittman, 2001) – 20% of Florida forests have been lost from 1950-1990s z New highways, driveways and fairways consume 1000 acres of wetland every year (Grunwald, 2002) AvailabilityAvailability andand QualityQuality ofof WaterWater z Urbanization and migration are stressing the groundwater, lowering the water table and increasing water pollution in the state (Governor’s Commission for a Sustainable Florida, 2001). z A study conducted on the Indian River Lagoon Watershed concluded that urbanization from 1920-1990 was the single most contributing factor in increased annual and single event runoff volumes (Kim et al, 2002). z Immigration between 1995 and 2000 increased the demand on water by approximately 30% (FAIR). MunicipalMunicipal WasteWaste ProductionProduction
Solid Waste Generation and Management 1995-1999
25,000,000 20,000,000 15,000,000 Tons of Waste 10,000,000 1995 5,000,000 1999 0 Total Landfilled Recycled Managed Tons Tons Tons
Source: Florida Department of Environmental Protection FloraFlora andand FaunaFauna z Increased migration as a result of Globalization may increase pest invasions. – Introductions from Asia to Florida increased from 1986-2000 – Increase in introductions parallels increase in goods exported from China to the US (1985- $5b, 1999-$62b)(Loope & Howarth, 2002). z Urban and Rural development are 2 of the leading causes of loss of wetlands. If Globalization is having an negative impact on the environment of Florida we would expect…. z A decline in air quality z A decline in water quality/availability z A decline in biodiversity z An increase in land usage z An increase in the production of waste z An increase in the consumption of resources However,However, evidenceevidence showsshows……
z Emissions have declined Annual Air Emissions CO2 z Water quality is 300,000,000.00 Emissions in 200,000,000.00 variable Tons 100,000,000.00 0.00 1995 2000 z There has been no Year significant change in the status of Fauna in Annual Air Emissions of SO2 and NOx 700,000 600,000 Florida 500,000 Emissions in 400,000 Tons 300,000 SO2 Tons z Managed Solid waste 200,000 Nox Tons 100,000 0 has decreased 1985 1990 1995 2000 Year
Source: EPA Can Florida’s Environment Keep Up with the Stresses of Growth? PolicyPolicy ImplicationsImplications z The global economy in the post-NAFTA years may not have adversely impacted the environment to the extent hypothesized by the incompatibility paradigm; nonetheless, the state faces many long term environmental pressure points. – Farmers – Business – Manufacturers – Human migration – High Tech Industry – Service Industry AreAre therethere Safeguards?Safeguards? z Global Safeguards – Collaborative Treaty frameworks – Self imposed by WTO or NAFTA z National Safeguards – National Policies and Laws z Local – 35 statutes governing environment – 11 Regional Planning Councils – Centralized agencies (FDEP) – Growth Management as a 1985 national model MostMost SignificantSignificant HurdlesHurdles toto thethe PreservationPreservation ofof FloridaFlorida’’ss EnvironmentEnvironment z Subsidies – The sugar industry – Encourages sub optimal land use z Growth Management z No protection against bio-invasion z No attention to the impact of global forces PolicyPolicy RecommendationsRecommendations z Need for Targeted Research z Need for Institutional Safeguards z Need for Reassessment of Existing Environmental Laws – Are existing laws sufficient? z Need for Engaging Local Communities z Need for Trained and Skilled Workforce